business strategies for evaluating it in banking based on ...€¦ · evaluated indicators which...

Applied mathematics in Engineering, Management and Technology 2 (5) 2014:220-234

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Abstract

This study aims to develop a model for evaluating the performance of IT business

strategies using BSC approach. In this research, strategic analysis performs to

establish logical relation that is based on the BSC assessment criterion. Therefore,

BSC techniques are used to identify indicators. In this study, the level of

performance of bank has been assessed and evaluated by using this model. The

evaluated indicators which finally will be analyzed, has been received from IT BSC

bank. After determining the factors of evaluation, the related questionnaires were

given to the senior managers in research and development department and IT

department of that purposed bank. Each of the experts was asked about the presence

or absence of a direct relation. Data were collected from questionnaires then by

using a simple average of the opinions; governing relations on main communicated

were extracted and the numerical value of the information obtained from the

questionnaire were determined by DEMATEL method and data analysis was

conducted to determine the hierarchy of criteria and factors impact and

effectiveness intensity by using DEMATEL method. In fact, the approach has been presented in this paper has been used

DEMATEL technique to determine cause and effect relations and strategy map. Finally, the data and results obtained from

this understandably structural model were analyzed. According to the obtained results, it has been identified that the most

important factors affecting the other performances of bank is the reduction the vulnerability of information systems by

enhancing the security of information systems.

Keywords: Balanced scorecard (BSC), Strategy map, Key performance indicator (KPI), IT business strategies, Performance Evaluation.

1.Introduction

Bank as an organization in today's world which play an important role in the economy should stride effective

and helpful steps in order to assess the needs of the customers in the services given to clients. Nowadays,

managers of financial institutions are trying to improve their competitive advantages. To create competition in

the banking institutions, greater emphasis is required for internal operational performance. Financial institutions

need to create effective methods for implementing business strategies by the goals of successful participation in

performance analysis .The structural analysis of an evaluation model that links strategic objects as effective

improvement paths becomes a critical issue for banking institutions if they are to sustain their competitive

advantages. Several analysis models have been applied to organizational performance measurement for years

(e.g., ratio analysis, total production analysis, regression analysis, Delphi analysis, balanced scorecard (BSC),

analytic hierarchical process (AHP), and data envelopment analysis (DEA)). These approaches vary regarding

their basic concepts, aims, advantages, and disadvantages (Dessler, 2000). The analytical methods or tools

chosen for performance analysis by management depend on the situation and the type of organization.

Nevertheless, most successful organizations have common characteristics, including specific visions, positive

actions, and effective methods of performance measurement (PwC, 2009a, 2009b).Thus, in evaluating IT

business strategy, the remarkable thing is that the strategic steps are derived from important objectives. Today,

the knowledge in all aspects of financial and non-financial performance is crucial for the financial management

decisions. Several models have been developed to measure the performance such as the balanced scorecard

frameworks. In this approach, each organization is considered from the aspects of financial, customers, internal

processes, learning and growth. BSC focused on non-financial and financial aspects, long term and short term

strategies, internal and external trade strategies (Kaplan &Norton, 1992). By using BSC approach, banking

institutions can easily evaluate activities related to strategies and banking services. Institutions and other

financial institutions are broadly used BSC Model not only as the key to reach a correct strategy, but to achieve

Business strategies for evaluating IT in banking based on the BSC

approach

1.Parisa Daneshvar

2. Dr Mohammad Ali Afshar Kazemi

1 - Department of information technology ,electronic branch , Islamic Azad University . [email protected] 2-associate professor of industrial management ,central Tehran branch ,iau,Tehran,Iran

[email protected]

mailto:[email protected]

Applied mathematics in Engineering, Management and Technology 2014

P. Daneshvar et al

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a proper planning. Financial institutions can follow strategic performance in different aspects and manage their

strategic performance by utilization the balanced scorecard(Davis & Albright, 2004). In this regard, accurate

and complete descriptions of their strategies should be in a way that all members of organization understand

them and this is a necessity to fulfill this goal by providing strategic planping. One of important processes of

implementation of the Balanced Scorecard in each organization is the cause-relations between the objectives

(Evans,2002), which is also known as the most basic steps (Leung,2006). Cause-relations determine the exact

path of strategies fulfillment which is usually expressed in the framework of strategy map (Evans,2002). In

establishing strategic map, in addition to determining cause- relations between the objectives, the amount of

influence on each other's goals should be distinct (Leung,2006). We have used DEMATEL techniques in this

paper to show quantitatively the measure of the direct and indirect effect of factors on each other, to determine

the factors that having effects on and those factors receiving effects from, the classification of factors based on

having or receiving effects. There is an attempt in this article to utilize DEMATEL technique to present a

comprehensive and quantitative approach to set the relations, create a strategy map, and a thorough

understanding of the relation between goals (Thakkar, Deshmukh, Gupta, and Shankar ,2007). The purpose of

this research is as follows: (1) to organize suitable KPIs for the evaluation of banking performance based on the

BSC perspectives; (2) to use the DEMATEL technique to explore the complex causal relationships among KPIs

and to identify the critical central indicators and effective prioritization of the strategic steps in order to

construct the strategy map for banking performance improvements;(3) Using DEMATEL decision-making

method to collect a mathematical model for evaluating the business and information technology strategies in

banking; and (4) to provide suggestions from the analytical results and references for the management of

associated organizations as well as for future research.

2.Performance Evaluation

Performance evaluation process can be defined as the quantification of the efficiency and effectiveness of

activities (Kaplan & Norton). Performance measurement system provides an approach to identify successes,

strengths and weaknesses of the strategies and proper understanding of the progress and current status of the

organization(Neely;Gregoy1995). Rue and Byars (2005) suggest that performance measurement includes the

way employees refine their work and how they establish decision-making and the communication processes of

improvement plans. Kaplan and Norton (1992) describe performance measurement as a way to review an

organization’s financial and nonfinancial goals. As the competition is increasing at an international level, a

large number of organizations invest large amounts of resources in information technology and communication,

so that they can gain competitive advantage. IT projects will require a precise process to not fail as a result; it

requires an accurate assessment and using techniques which are appropriate for this project. In the process of

performance assessment, it is necessary to address all aspects of the project with regard to the overall goals and

strategies. Balanced Scorecard is a technique by which you can assess the performance of IT projects. Works

measurement and assessment are the reasons for the use of the Balanced Scorecard in a business by which all

the affairs can be controlled. The exiting of a measurement system is definitely effective on people inside and

outside the organization. If companies are trying to succeed and survive in the competitive age of information,

they should utilize the measurement systems of management which are drawn of strategies and capabilities.

3.Balanced Scorecard (BSC, IT BSC)

It is a technique for comprehensive assessment of Performance and its axis has been formed by Organization

Balance Scorecard (BSC) Strategy. At this method, strategy has changed to the measureable goals, and a system

is provided for supervision on strategy at four dimensions of growth, learning, internal processes, customer and

finance (Kaplan & Norton 2000). The benefits of using the BSC for banks are as follows: (1) it provides a

framework to assess and develop a bank’s strategy, (2) it develops strategic objectives and performance

measures to translate a bank’s strategies into actions, (3) it provides a way to measure and monitor the

performance of key performance drivers that can lead to the successful execution of a bank’s strategies, and (4)

it is an effective tool to ensure continuous improvement in the systems and processes of banks (Frigo et al.,

2000).In mid-1992, to illustrate the ideas associated with IT, a model of earlier BSC (Nelson&Anna) is

published and specially designed as the basis for the business strategic management of information technology


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and the measurement of efficiency and effectiveness of IT and information systems in organizations and this

model has grown in order to design complex concepts in this decade, and it has been introduced as a type

scorecard which is called ITBSC(Cram;2007). In the Standard Model of ITBSC which has been presented and

implemented by Grembergen (2004), the criteria of balanced scorecard model has been deformed to four

aspects of business value, operational excellence, customer orientation and future orientation based on

information system activities in organization. Business value field evaluated IT organizational efficiency from

the perspective of executives, and controls business value created from IT investment. Customer orientation

field evaluated IT performance from the perspective of internal business users. The operational excellence field

checks IT processes efficiency from a management perspective. Future orientation perspective displays

preparation for the future challenges of the IT structure and it shows human resources and technology required

for IT to provide services at all times.

4.Strategy map

The strategy map is one of the main concepts used in the implementation of the balanced scorecard. The

strategy map indicates the relation between different components of organization in the fields of activity related

to that strategy by which map, that strategy changed to the measurable and tangible activities and the way of

executing of that strategy become clear( Kaplan & Norton,1996). The strategy map can solve the problem of

lack of integration in programs by providing a framework of cause-relations, goals, outcomes and strategies and

it causes major functional mutations in many organizations by connecting management processes to a clear

strategy (Evans;2002). Strategy maps provide a visual framework and a concise description of an organization’s

strategy, and they can convert intangible assets into tangible outcomes (Banker et al., 2004).By of a high-level

design of strategy plan, managers can align the organization with strategy by executing strategy plans and

Balanced Scorecard connected to all units of the organization.

5.DEMATEL Technique

DEMATEL Technique is the abbreviation of Decision Making Trial and Evaluation. DEMATEL technique has

been presented by Fontela and Gabus in 1971 and it has been used by the Sciences and Human program of

Battelle Memorial Institute in Geneva between 1972 and 1976 to study and solve intertwined complex

problems. DEMATEL method is based on the oriented graphs (diagraphs) that can separate involved factors in

a matter in two groups of cause and effect. These diagraphs depicts the dependency relation between elements

of a system, so that the numbers on each diagraph is represented the intensity of the effect of one element on

other elements. Hence, DEMATEL method can convert the relation between the causes and effects to an

understandable hierarchical structure. This approach was based on paired comparisons, using experts' opinions

in extracting factors, giving systematic structure to them and by using graph theory principals provides a

hierarchical structure of the factors associated with relations of mutual giving influence and receiving the

influence of the mentioned factors in a way that the intensity of that mentioned relation is clear quantitatively.

In this technique, we have used the matrix or diagram to portray a complex structure of cause-relations and,

ultimately, it converts the cause-relations between criteria to an intelligible structure (Gabus&Fontela;1972).

The performance of DEMATEL technique includes the following steps:

1. To determine the criteria which is available in investigated factors

2. To determine the relation governing on between the criteria based on their pair-wise comparisons

3. To determine the final relation between the criteria according to expert consensus and diagraph

relations drawing

4. To determine the intensity of final relation between the relevant criteria

5. The formation of relations intensity matrix (matrix M̂ )

6. The formation of the relative intensity matrix governing on direct relation ( MM ˆ* the most sum of

matrix serial )

7. The formation of the existing relative intensity matrix from the direct and indirect relation (matrix 1)( MIMS )

8. Specify the hierarchy or possible structure of criteria


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6.The framework of strategy map drawing by using DENATEL method

Building framework of BSC strategy map and DENATEL analytical methods explained in this section. The

proposed framework of strategy map has been shown in Figure.1. At first, the most appropriate assessment

indicators are determined according to the four BSC perspectives then, the factors and governing relations on

main communication are identified by considering the characteristics of the bank performance assessment and

the bank targeting, by using the simple average of experts' opinions, then a fair analysis has been done on the

selected KPI by using analysis of DEMATEL technique. Regarding the obtained analysis and values, a strategy

map have been created qualitatively and quantitatively based on BSC strategy by using analysis of DEMATEL

technique.

Fig. 1. Proposed framework of constructing a strategy map of the BSC.

7.Indicators of performance evaluation

Selecting of evaluation factors has been done by considering IT BSC, in this paper. By using four BSC

perspectives, 21 indicators of performance evaluation for bank have been selected. Table 1 indicates a

description of selected key performance indicators of banking. The existing IT BSC indicates BSC strategic

objectives of IT investment. Figure 2 - it represents a basic pattern for strategy map that indicates BSC factors

assessment which are sketched based on four perspectives including financial, customers, internal process,

learning and growth; this figure is only based on IT BSC of purposed bank in which the cause-relation has not

been clear; this basic pattern is depicted based on Table 1; these two figures are the basis of indicators which

are assessed by the DEMATEL technique.


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Table 1. Descriptions of the key performance indicators selected for banking.


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Fig. 2. Basic template for a strategy map

8.Discovering the governing relation on communication, major aspects and discovering the governing

relations on communication, financial aspect indicators, customer aspect and internal process growth

and learning including each of their constituent elements

DEMATEL method has been used to obtain numerical values of the criteria, to determine the hierarchy of

criteria, and to determine the intensity of effects and being effective of factors which concluded the following

steps:

The first step: The extraction of primary matrix (matrix M̂ ) of direct relations of main aspects

For measurement the relations among criteria, it requires to design a scale of comparison in 4 phases: with no

effect; with low impact, with moderate impact, and high impact. Then by using the obtained opinions from

experts and a simple average of comments (comments average have been considered rounded), paired

comparisons will be adjusted among criteria respectively to their impacts and directions. Then, as the results of

these assessments, the basis data can be earned as a direct relation matrix which is a 4 * 4 matrix, in which a ¡ j

means the degree of impact I criterion on J criterion.

At this phase, we adjust the paired comparisons respectively to the impact and direction among criteria by using

the simple average of comments, we have organized two matrices, one of them containing 4 main aspects of

factors and the other concludes 21 factors of main aspects of constitutive elements.

Step two: Normalize Direct relation matrix:


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At this phase, to calculate the matrix, we multiply the relative impact intensity governing on direct relation on

each entry of the matrix M̂ to the reverse of the highest serial sum )( of that matrix.

MM ˆ*

Third step: The formation of relative intensity matrix governing on direct and indirect relations and extraction

of whole relations and calculation of their intensity

At this phase, considering the matrix I , matrix MI , and then the matrix 1)( MI are calculated.

To obtain the possible relative intensity of the relation, directly or indirectly, the following formula is used

1)( MIMS

Table 2 - Relative intensity matrix governing on direct and indirect relations (main aspects)

Table 3 - Matrix of whole relations or possible relative intensity of the direct and indirect


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Step Four: Determining hierarchy or possible structure of criteria

In Matrix S, the sum of elements in rows ( kR ) and the sum of elements in column ( kD ) and the total (

kk DR ) and their differences ( kk DR ) is calculated per K. Total ( kk DR ) for each criteria which

comprising system shows the importance (weight) of that criteria in that system. Value ( kR ) for each criteria

represents the measure of its impact on other criteria of system and ( kD ) its corresponding value, express

strongly the intensity of begin affected of the mentioned criteria than the other criteria in system. Therefore (

kk DR ) is determining the total of being affected and effective of the purposed criteria in the system. In

other words, the criteria which have the most value of ( kk DR ) has the most interaction with the other

system criteria. The ultimate value of being effective of each criterion on the other system criteria is obtained

from the subtracting of ( kk DR ). If the value of ( kk DR ) is positive, the criterion belongs to the cause-

group and if the value of ( kk DR ) is negative, the criterion belongs to the effect group.

The validity of the final structure of the hierarchy which is obtained from this technique has been approved

scientifically regardless of data quality; and it provides the possibility of the analysis of factors' role in

discussed issues. Descending (R + D) illustrates the priority of objectives weight in terms of being affected and

effective and parameters ( R - D ) only shows the intensity impact of net objectives. R and D which are obtained

values has been shown in Table 2 and Table 3.

Step Five: Formation of classified final graph

A Cartesian coordinate system has been formed in a way that the longitudinal axis is graded by the measure of

(R + D) and its transverse axis is graded by the measure of (R - D) and the position of each of existing targets is

determined by a dot in this system. Drawing graph is a simple graphical view of the final structure of the

system.


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Fig. 3. A causal diagram of the four BSC perspectives for banking

Figure 3 – The word R-D on the y-axis and the word R + D on x-axis have been shown. In this shape, (F) which

is financial aspect has the most relations with the other aspects with the highest value (R + D). Amount (R - D)

demonstrates the effectiveness and influence measurement. In this shape (P) which is internal processes in (R –

D) has the highest value and has the greatest effects on other views and among the main aspects, is the most

powerful element on the other factors and it is called the main cause-factor among the main view. (F) with the

lowest value (R - D) receives the most influence from the other aspects, in fact it receives the strongest

influence and the main effect factor.

Also at this phase, we have been formed a Cartesian coordinate system which has been graded for 21 elements

in a way that the longitudinal axis is measured by (R + D) and by its transverse axis is measured by (R- D). The

position of each of 21 elements under discussion has been shown by a dot in this system.

Fig. 4. A causal diagram of the key performance indicators for banking.

In this figure, (F6) which is the capital return has the most relations with the other functional factors with the

highest value (R + D). In this figure, (P3) which is the process of damage reduction by enhancing the security of

information systems has the highest value of (R - D), it also has the greatest impact on other functional factors,

and the strongest element on the other factors which is called main cause-factor. (F4) which is raising revenue

with a minimum value of (R - D) have received the most impact from other functional factors, in other words, it

accepts the most powerful influences, which is called main effect-factor .

Step Six: Calculation of the threshold limit and the measure of being affected and effective

For calculation of threshold limit and the level of being affected and effective of BSC main aspects on each

other: First, we calculate a threshold limit to determine the measurement of being affected and effective of main

aspects. For calculation, according to (Table 2 - Relative intensity matrix governing on the direct and indirect

relations) considering the maximum and minimum values of the related matrix, we compute the first quarter to

-1.5

-1

-0.5

0

0.5

1

1.5

2

0 1 2 3 4 5 6

Series1

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

0 2 4 6 8 10 12

DEMATEL2

DEMATEL2

R+D

R-D

P3

F6

F4

P

L

R-D

R+D

F C


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the fourth quarter. (MAX = 1. 0988 MIN = 0. 2851) .Then, we review the numerical value of each factor on the

others from the first quarter to the fourth quarter.

The ineffective factors are located in the first quarter, low impact factors are located in the second quarter, the

factors with moderate impact are located in the third quarter, and the factors with high impact are located in the

fourth quarter.

Table 4-

first quarter

Second quarter

Third quarter

Fourth quarter

0. 2851

0.

4885 0.6 919

0. 8953

1. 0988

Ineffective

Low impact

Moderate

impact High Impact

A threshold limit

A threshold

limit

A threshold

limit

A threshold

limit

In continue, we are going to calculate the first to the fourth quarters in order to calculate threshold limit and

affected and influenced main functional factors on each other (21 factors), regarding (Table 3) and by

considering the maximum and minimum values of the related matrix.

(MAX = 0.3525 MIN = 0.0902)

Then, we are checking the numerical value of each factor on each other from the first quarter to the fourth

quarter.

Table 5-

First

quarter

Second

quarter Third quarter

Fourth

quarter

0.0902

0.1557

0.2212

0.2867

0.3525

ineffective

Low impact

Moderate impact

High Impact

Those criteria which are located at low threshold (criteria with low impact, criteria with effectless impact), their

affected and influenced measure is poor. These criteria are generally separated from the system. Against are

those criteria which are located at the high threshold which have the high affecting and influencing power.

These criteria are unstable and each action on these criteria has an influence on the other criteria, and finally

they receive a feedback which influence on themselves.

The strategy map

During the planning the strategy based on a threshold value obtained, the factors that have a low threshold value

are removed. These factors are not included in the strategy map. It should be mentioned that those factors which

have been eliminated are not completely ineffective. Some of these factors are affecting averagely and some

have low impact and some are completely ineffective. In strategy plan, those factors which are unstable and

affected or influenced strongly are considered. The factors which are at the high threshold are unstable and each

action on these factors will influence the other factors.

From the 21st factors evaluated, 13 have been considered in strategy plan and 8 of them have been removed. 2

most affecting and influential factors are shown as solid circles.


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Fig. 5. A strategy map of key performance indicators based on the BSC for banking.

9.Summary of results of performed analysis:

Tables 4 and 5 contain a summary of the results of the analysis which have been obtained from DEMATEL.

As shown in Table 4, studies display that among the four major perspectives, P has an important role as an

influential factor among the four other BSC aspects. Among the four main perspectives, P with the highest RD

value and with numerical value 1.5999 is the greatest influenced factor. Factor L with numerical value 0.6715

has the second position after P. Factor F with the lowest RD value ( -1.1598) is the most affected

factor. After factor F, factor C with numerical value -1.1116 is the second affected factor

Factor F with the highest values R + D (4.8852) has the most interaction with the other criteria. After F, factor

C with numerical value 4.3164 is in the second position.

The results showed that among 21 elements studied, P3 (Process to reduce the harm by increasing the security

of information systems) with the highest value (R-D), with the numerical value 1.823 has the greatest influence

on other factors. Matrix given in Table 3, it is clear that the numerical value of the relative intensity P3 on F6 is

0.3525. This number has been placed in the fourth quarter of the maximum threshold values. Regarding tables

4-5, it is clear that the number of indicators which P3 is influenced on them is the maximum number of affected

indicators. As shown in the above tables, P3 has an average influence of factors F1 , F2 , F3 , F5 , C1 , C2 , C4 ,

P1 , P4 , P5 , L2 , L3. Numerical value of these factors is located at threshold 0.2867 to 0.2212. As it is also

clear in strategy plan, P3 strongly influenced of factors F4, F6, C3, C5, and numerical values of these factors

are located at the threshold 0.3525 to 0.2867. L1 (checking and adjusting the Information Security Policy) with

the numerical value of 1.1986 is the most affected factor after P3.

F4 (Raising revenue) with the lowest value (R-D) with the numerical value of -1.6397 is the most affected than

the other factors. This criterion is in the 21st ranking and it is called the main affected factor. Factor F4 received

influence from factors F2 , F3 , F5 , C1 , P2 , P5 , L4 , L5 Average numerical value of these factors are located

at the threshold of 0.2867 to 0.2212. As it is considered in a strategy plan, F4 receives impact from the Factors,

F6 , C2 , C3 , C5 , P1 , P3 , P4 , L1 , L2 , L3 strongly. The numerical values of these factors are located at the

threshold of 0.3525 to 0.28867. Also F6 with the numerical value of -1.4585 has been ranked 20th. F6 (Return

of investment) accepts the greatest impact from other factors after F4. C3 with the numerical value of - 1.0871

is third affected factor.

F6 (Return of investment) with the highest value R + D, with the numerical value of 10.4433 has the most

interaction with other criteria. C5 (increasing use of IT systems) with the numerical value of 9.9715 is located

in the second position in relation to other factors.


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Table 4 -Dispatching and receiving indicators for each BSC performance indicator.

(¹: strong affected or effective - ²: medium affected or effective)


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Table 5 -Summary of results analyzed by DEMATEL

R+D Rank

No. of

indicators

dispatching

influence to

R-D Rank

No. of

indicators

receiving

influence

from

(F) 4.8852 1

-1.1598 4

F1 7.1421 20

-1.0319 18 5

F2 7.653 15 3 -0.1558 14 5

F3 8.4367 13 4 -0.4819 16 9

F4 9.8079 3 6 -1.6397 21 18

F5 8.4948 12 10 0.4272 6 5

F6 10.4433 1 9 -1.4585 20 19

C 4.3164 2

-1.1116 3

C1 7.5162 18 4 -0.1416 13 1

C2 8.2439 14 8 0.1515 9 7

C3 9.4827 6 6 -1.0871 19 17

C4 7.5223 17

-0.6165 17 5

C5 9.9715 2 14 0.0143 11 13

(P) 4.1687 3

1.5999 1

P1 9.2945 7 10 0.0401 10 11

P2 7.1852 19 4 0.584 5

P3 8.6366 11 16 1.823 1

P4 9.5841 5 8 -0.0581 12 12

P5 9.251 8 7 -0.1654 15 11

(L) 3.7477 4

0.6715 2

L1 8.8542 10 14 1.1986 2 2

L2 9.1084 9 13 0.7496 4 4

L3 9.7931 4 15 0.3809 7 11

L4 7.6339 16 3 0.3321 8 1

L5 6.5806 21 2 1.1352 3

.

10.Practical Suggestions

Based on the extracted results, factor P (internal processes) has the most influencing performance on the other

banking performances. So this factor was unstable, and any positive action on this criterion has an impact on

other banking performances. Results indicate that internal process aspect introduces a few vital processes that

expected has the most impact on strategy fulfillment. Therefore, it is recommended to reinforce the internal

processes of aspect indicators (development the process for easy access of customers to banking services,

simplification of internal processes, systems integration, damage reduction process by enhancing the security of

information systems, aligned the IT business strategy and banking objectives, documentation of processes).

Reinforcing the functional indicators of the purposed bank leads to increasing excellence operation, creating

customer value, increasing productivity and net profit and increasing information security. Meanwhile, P3


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(process of damage reduction on the security of information systems) is most influential factor on the key

performance indicators of bank. The existing of a security problem can influence a bank and monetary institute

in many different ways It is suggested all departments be serious about standardization of information security

to implement effective and appropriate. It is better to establish a systematic approach for the issue of security.

Based on this approach, providing the information security in the bank organization should be done

continuously and in the cycle of immunization including designing, implementation, assessment, and reforming.

So it is necessary to create required establishment for creating and continuing the existing information security

in banks based on a specific methodology, in addition to providing required designs and security plans,.

To strengthen the P1, it is recommended to pay attention to the qualitative and quantitative expansion of

banking services, and to the expansion of services of time and place. Variety of quantitative and also qualitative

of services is another positive aspect of technology development. This attitude that if you decide to develop a

technology should have the maximum matching with time and place means that each person has this ability to

receive his/her required system in any geographical location and within 24 hours a day, seven days a week.

Banking institutions need to align the activities of process improvement with their strategic priority to

strengthen internal processes. Moreover, the capital for doing business should be in consistent with their

strategic plan.

So from the perspective of internal processes, and learning growth perspective is the most influential factor. So

it is offered to reinforce these factors: the performances related to this view, review and organization of

information security policy, innovation in old systems and new systems development, development of

appropriate IT infrastructure, increasing the number of training hours and increasing the number of personnel in

order to be trained in the field IT. Item offered in this area is the development of human knowledge. Related

and appropriate training for staff productivity should be considered. L1 is the most influential among the

factors. It is suggested to check the perspectives and adjustment of information security policies should be

strengthened. In this regard, the development of law indicators is recommended. It should be paid attention to

the principal of customer-orientation for developing and establishing rules and functional regulation. It should

always be noted that public do not accept the above risk in financial discussion especially if a window becomes

open for new movement and economic activity in which case they do not play a role in the development of this

process till become assured about its regulation backing. To innovate in old systems and develop new systems,

it should be paid attention to develop of financial infrastructure and human infrastructure for development and

implementation. One of the most important factors in developing of processes' aspects is software development

and increasing of security in its systems. If the required conditions to be provided to meet these requirements,

the application and use of banking services will be facilitated and expanded and the risk of using information

technology systems with the preservation of high level of security will be reduced, and customer confidence

and satisfaction will be increased .

The reform strategy, technology oriented banking system should be reviewed carefully to all structures and

structural elements in bank structures till the best tools, services and infrastructure injected to system to

optimize working process.

As previously mentioned, the greatest impact on performance are respectively on (F4) (F6) (C5). Therefore key

performances (raising revenue, returning the investment and present net value, new customers attraction and

existing customers’ maintenance) are under the effect of influential performances which has been shown that

strengthen the factors such as internal processes, learning and growth have a deserving impact in increasing of

income and capital return. Customers' face determine the value given to target customers and provide the field

of creation of value from intangible assets

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